Banks May Ease Lending Standards Soon

Good news for home buyers?  Lending standards are what the bank uses to determine if you will qualify for a loan.  A few years back, what caused many of our housing issues, was loose lending standards.  I remember clearly in 2002 wondering how I qualified for my loan with the job I had, and the amount I had saved.  I wasn't alone.  Banks were giving out loans to just about anybody, and several years later, many of those people who wondered "why me?" were losing their homes to foreclosure.

So standards tightened up.  Your credit scores needed to be higher, your debt to income ratios were adjusted to show less risk, and larger downpayments were required.

Now that things are improving, but interest rates are creeping up, experts are predicting that lending standards might loosen a little to drum up more business, according to this article:

Banks May Ease Lending Standards Soon

This could be good news!  Stay tuned. . . .